Synthes Chair Took A Lowball Offer From J&J To Serve His Own Needs: Investors’ Lawyer

Pennsylvania-based Synthes’ chairman cared more about retiring to a life of philanthropy than shareholders when he sold the health care company to Johnson & Johnson, a lawyer for investors told a judge Friday.
Investors’ lawyers claim Synthes chairman Hansjoerg Wyss didn’t consider higher offers from private equity firms, choosing instead to sell the company to Johnson & Johnson so he could sell his J&J shares and reap tax awards, Bloomberg reported Friday.
The health care giant recently bought Synthes, which makes devices to treat trauma victims, for $21.3 billion.
Synthes shareholders are set to receive $58.66 and about 1.72 Johnson & Johnson shares for each share they own, according to Bloomberg.
Synthes’ attorneys argued before Delaware Chancery Court Judge Leo Strine on Friday that company directors considered other offers before going with Johnson & Johnson.
They also argued Wyss didn’t violate any conflicts of interest by participating in the sale.
Strine agreed shareholders’ attorneys couldn’t prove Wyss unduly benefited from the sale.
“You’ve failed to show how Wyss took something for himself that was different from the other shareholders,” Strine said, according to the Bloomberg.
He is slated to decide the case by September.
Source:Abby Rogers